There may be compensation for GE stock

Erie Times-News (PA)

In part of a settlement between GE and the Securities & Exchange Commission, the SEC found that GE failed to disclose to investors important information about profit growth in its power unit, and unfavorable trends in its insurance business that subsequently led to significant losses.

For decades, General Electric Co. was perhaps the most frequently purchased single stock in Erie County.

Not only did people feel a connection with GE Transportation, located in Lawrence Park Township, but employees at the plant could receive GE stock as part of their retirement benefits package.

Many of those same people recently have received letters notifying them that they may be eligible for compensation if they purchased GE common stock between October 2015 and January 2018.

It's part of a settlement between GE and the Securities & Exchange Commission in which the SEC found that GE failed to disclose to investors important information about profit growth in its power unit, and unfavorable trends in its insurance business that subsequently led to significant losses.

The settlement required GE to contribute $200 million to a GE Fair Fund, established by the SEC. People who purchased GE common stock between Oct. 16, 2015 and Jan. 16, 2018 can apply to receive compensation from this fund.

To apply for compensation, visit GEfairfund.com, or fill out and mail the application you received to GE Fair Fund, P.O. Box 6978, Syracuse, N.Y., 13217-6978. You can also call 800-511-6120 to receive more information or a claim form.

Applications must be postmarked or submitted online by Oct. 19.

GE common stock was trading at $67.62 a share on Wednesday, down from just over $100 a share when GE affected a one-for-eight reverse split on July 30. The comparative value of a share of GE common stock has declined by 67% over the past five years.

Here are some frequently asked questions on the GE Fair Fund website:

Can those who received GE common stock through a GE employee benefit program receive a payment?

It depends on the details of the program in which you participated. If you believe your participation in such a program involved an investment in common stock during the relevant period, submit a claim and its eligibility will be determined.

If you also purchased GE common stock on your own during that time, you will need to submit a separate claim.

Am I eligible if I received GE common stock as a gift or inheritance?

A claim's eligibility is based on when the shares were originally purchased, not when it was gifted or inherited. Any claim must include documentation of when it was purchased, and when it was transferred to you.

What documentation do I need to apply?

You will need to provide documentation of the number of GE common stock shares you held as of the opening of trading on Oct. 16, 2015, all purchases of GE common stock between Oct. 16, 2015 and Jan. 16, 2018, and the number of shares you held as of April 16, 2018.

These documents can be monthly brokerage or other investment account statements, trade confirmation slips, or a signed letter from your broker on firm letterhead confirming the information in your application.

Will I be notified whether my claim is eligible and how much will I be paid if it is eligible?

A determination notice will be mailed to all claimants with the status of their claim: approved, deficient or ineligible. If your claim is deficient, you will have the opportunity to make corrections or additions.

The amount you receive will depend on several factors, including the number of eligible claims received, the total dollar amount of those claims, and the eligible loss amount of your GE common stock transactions. No date for payment has been provided.

HERE to HELP: Have a consumer question you'd like us to help you with? Leave a message with David Bruce at 870-1736, send an email to [email protected] or send mail to 205 W. 12th St., Erie, PA 16534.